Sunday, July 2, 2017

GST impact on the brokerage you pay

For those who use discounted brokerage like UpStox, Samco or Zerodha the impact would not be that severe but if you are still using the traditional brokerages that charge 0.05% please stop today and save lakhs of Rs as brokerage and GST if you are high frequency intraday trader.

If you are a positional trader the brokerage charges are 0 for delivery positions with Zerodha.
Below image shows the brokerage calculation for FNO script say IBREALSTAE with 10k as the lot size.

Previously the ST was 15% and now GST would be 18%. which means we would end up paying 3256/-  as brokerage and tax charges with traditional brokerage houses whereas with discounted brokers one would have to only pay 826/- as brokerage and tax charges a difference of nearly 300% and that's huge.

I had been once a victim of paying huge brokerage which ran in to around 1.25 lakhs of brokerage so net profit I made was merely 40,000 due to the heavy brokerage I ended up paying with traditional brokerage firm which charged just 0.05% as brokerage.

Now I am quite happy with Zerodha and their products have been really good especially the trader Pi for doing algorithm based trading. My average turnover for a day is 2cr the brokerage and taxes I pay is around 2000/- whereas with traditional brokerages the same amount would have been 12000/- approximately.

You can use the following links to get details about Zerodha. In case of any queries do drop me a message in comment section.

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Brokerage Calculator


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1 comment:

  1. I lost a huge money as brokerage with traditional brokers like Share khan. Thanks this was helpful